China's Rusted Machinery Sector

A recovery in growth was meant to dig China's machinery sector out of a hole. That hasn't happened.

Sector heavyweights Zoomlion and Sany had a tough 2012. China's slowing economy meant the wind was against them, with weak construction hitting demand for machinery. Balance sheets were squeezed out of shape as the companies tried to keep sales on track by offering better terms to customers. Across the sector, accounts receivable...